The Importance of Securing Errors & Omissions and Commercial General Liability Insurance

Independent contracting provides some of the best employment and career perks imaginable as the job flexibility, independence and variety is unparalleled. However, at the end of the day you are still self-employed and should protect yourself and your family from lawsuits that may arise. If either you or your corporation should be named in a lawsuit having the proper insurance coverage is key to long-term peace of mind.

When considering insurance options it is important to note that both the Errors & Omissions (“E&O”) and Commercial General Liability (“CGL”) policies are required to adequately protect you if you are incorporated or a sole proprietor. The E&O (also called Professional Liability) coverage protects, as the name implies, for your professional advice given. CGL coverage is focused on protecting you from claims as a result of Bodily Injury or Property Damage to a third party for whom you are legally liable. As litigation continues to be on the rise it is recommended that limits of at least $2,000,000 for both Errors & Omissions and Commercial General Liability be secured.

It is important to note that purchasing insurance is a fully tax deductible business expense. Also, by securing insurance coverage as an independent contractor you are investing in your business as this coverage reaffirms your independent contractor status with respect to Canada Revenue requirements.

LMS PROLINK Ltd. is an innovate and forward thinking insurance brokerage operating out of Toronto Ontario with satellite offices throughout the country. We are an independent and a wholly Canadian operation that have specialized in professional insurance solutions for more than 30 years. We understand the professions that we work with allowing us to provide industry leading coverage at extremely competitive prices. Let our extensive knowledge work for you.

While prices can vary significantly at LMS PROLINK, there are a variety of independent contractor program options with rates starting at $21 month. To learn more please contact Fern Kako at fernk@lms.ca or 1-800-663-6828